diff --git a/arviz/plots/forestplot.py b/arviz/plots/forestplot.py
index 9cc9bc8280..28cb5d43bf 100644
--- a/arviz/plots/forestplot.py
+++ b/arviz/plots/forestplot.py
@@ -75,8 +75,8 @@ def plot_forest(
         interpret `var_names` as substrings of the real variables names. If "regex",
         interpret `var_names` as regular expressions on the real variables names. See
         :ref:`this section <common_filter_vars>` for usage examples.
-    transform : callable, optional
-        Function to transform data (defaults to None i.e.the identity function).
+    transform : callable or dict, optional
+        Function to transform the data. Defaults to None, i.e., the identity function.
     coords : dict, optional
         Coordinates of ``var_names`` to be plotted. Passed to :meth:`xarray.Dataset.sel`.
         See :ref:`this section <common_coords>` for usage examples.
@@ -228,7 +228,19 @@ def plot_forest(
 
     datasets = [convert_to_dataset(datum) for datum in reversed(data)]
     if transform is not None:
-        datasets = [transform(dataset) for dataset in datasets]
+        if callable(transform):
+            datasets = [transform(dataset) for dataset in datasets]
+        elif isinstance(transform, dict):
+            transformed_datasets = []
+            for dataset in datasets:
+                new_dataset = dataset.copy()
+                for var_name, func in transform.items():
+                    if var_name in new_dataset:
+                        new_dataset[var_name] = func(new_dataset[var_name])
+                transformed_datasets.append(new_dataset)
+            datasets = transformed_datasets
+        else:
+            raise ValueError("transform must be either a callable or a dict {var_name: callable}")
     datasets = get_coords(
         datasets, list(reversed(coords)) if isinstance(coords, (list, tuple)) else coords
     )
diff --git a/arviz/tests/base_tests/test_plots_matplotlib.py b/arviz/tests/base_tests/test_plots_matplotlib.py
index 5afcbe1669..e0047d9e8b 100644
--- a/arviz/tests/base_tests/test_plots_matplotlib.py
+++ b/arviz/tests/base_tests/test_plots_matplotlib.py
@@ -2086,3 +2086,21 @@ def test_plot_bf():
     bf_dict1, _ = plot_bf(idata, prior=np.random.normal(0, 10, 5000), var_name="a", ref_val=0)
     assert bf_dict0["BF10"] > bf_dict0["BF01"]
     assert bf_dict1["BF10"] < bf_dict1["BF01"]
+
+
+def test_plot_forest_with_transform():
+    """Test if plot_forest runs successfully with a transform dictionary."""
+    data = xr.Dataset(
+        {
+            "var1": (["chain", "draw"], np.array([[1, 2, 3], [4, 5, 6]])),
+            "var2": (["chain", "draw"], np.array([[7, 8, 9], [10, 11, 12]])),
+        },
+        coords={"chain": [0, 1], "draw": [0, 1, 2]},
+    )
+    transform_dict = {
+        "var1": lambda x: x + 1,
+        "var2": lambda x: x * 2,
+    }
+
+    axes = plot_forest(data, transform=transform_dict, show=False)
+    assert axes is not None
diff --git a/examples/matplotlib/mpl_plot_forest_transform.py b/examples/matplotlib/mpl_plot_forest_transform.py
new file mode 100644
index 0000000000..d23b59ba41
--- /dev/null
+++ b/examples/matplotlib/mpl_plot_forest_transform.py
@@ -0,0 +1,38 @@
+"""Forest Plot with transforms
+==============================
+_gallery_category: Distributions
+"""
+
+import arviz as az
+import matplotlib.pyplot as plt
+import numpy as np
+
+non_centered_data = az.load_arviz_data("non_centered_eight")
+
+
+def log_transform(data):
+    """Apply log transformation, avoiding log(0)."""
+    return np.log(np.maximum(data, 1e-8))
+
+
+def exp_transform(data):
+    """Apply exponential transformation."""
+    return np.exp(data)
+
+
+def center_data(data):
+    """Center the data by subtracting the mean."""
+    return data - np.mean(data)
+
+
+axes = az.plot_forest(
+    non_centered_data,
+    kind="forestplot",
+    var_names=["theta", "mu", "tau"],
+    filter_vars=None,
+    combined=True,
+    figsize=(9, 7),
+    transform={"theta": center_data, "mu": exp_transform, "tau": log_transform},
+)
+axes[0].set_title("Estimated theta for 8 schools model")
+plt.show()